The African Export-Import Bank (Afreximbank) has launched the African Trade and Distribution Company (ATDC), with seed funding and a subsidiary named ATDC Minerals (ATMIN), to catalyse large scale trade in raw materials, minerals and value-added products from across Africa.
- •The new entity has already secured a US$1 billion funding pledge from Afreximbank to invest in aggregation of value-added goods, support logistics and distribution networks as well as financing its subsidiaries’ business operations.
- •Afreximbank, through the Fund for Export Development in Africa (FEDA), established ATDC in collaboration with Arise Integrated Industrial Platforms (Arise IIP), Equitane DMCC and the African Continental Free Trade Area (AfCFTA) Secretariat.
- •At the launch ceremony in Algiers, ATDC signed deals with several firms across the continent spanning logistics, minerals, agricultural produce, among others.
“Africa is rich in resources; but historical dynamics have skewed our trade outwards. Traditionally, the continent has relied on others to add value to its commodities and minerals as well as to trade them. Through ATDC and ATMIN, we aim to close the loop and to take back control of how our commodities and minerals in global Africa are produced and traded across value chains by integrating them in local economies to benefit more people,” President and Chairman of Afreximbank, Prof. Benedict Oramah said.
The signed deals include: a collaboration with Arise Integrated Industrial Platforms (ARISE IIP) to supply feedstock to its operating companies in various special economic zones; a co-investment partnership with BSMART Technology Limited to establish digitally integrated logistics hubs in key African ports trade repos with Export Trading Group (ETG), KK Kingdom Nigeria Limited and Sunbeth Global Concepts Limited.
ATDC also agreed on terms for joint ventures with CBZ Holdings and Nigeria Commodity Exchange for setting up national ATDCs in Zimbabwe and Nigeria respectively. At the same time, ATMIN announced landmark deals to the tune of about US$3 billion which included oil lifting arrangements with Nigeria National Petroleum Company Limited and Roxzen Nigeria Limited.
ATDC’s flagship subsidiary, ATDC Minerals (ATMIN), will be dedicated to trading and financing minerals and hydrocarbons.